don't get confusedy the ball street lingo. we are beating expectations only because forecasts are dismal. they current state of economi expansion is just wishful thinking. that is it for tonight on "the willis report. we will see u tomorrow ♪ lou: good evening, everybody. thank you for being with us. the white house not only sticking by their assertions that the array of scandals now engulfing the white house are phony, but the president's own spokesperson decring to of the most serious scandalto be overbought regardless of the ongoing investigations to find out exactly who ordered the internal revenue servi to target conservative groups, the tea party, and to left four americans and one ambassador to die at the hands o of terrorists and benghazi on september 11th of last year? here is whi house press secretary jay carney earlier today confidently declaring that

republican efforts to investigate benghazi and t internal revenue service have failed well ignoring the mountains of evidence uncovered in a multitude of investigations into both growing scandals. >> the was an effort underway to turn it into a partisan scandal. i don't think anybody here would doubt that. and what we have seen as time has passed and more facts have become known, whether it is about the attacks in the talking points or revations about contacted the irs, attempts to turn this into a scandal has failed. there was a time when there was a lot more energy and focus was paid by sub from the congress as well as the media on issues that , while important, are not of the highest priority to the

american people and were not scandals in. lou: his timing is impeccable and outright denial that the benghazi terrorist attackas anything more than a partisan political witch hunt jobs today by a report that the lead suspect in that terrorist attack is giving interviews this. is not to the fbi, cia, or any other agency involved in the investigation effort or in his on libyan government for that matter. selling another network that he has not been detained, questioned, even contacted by anne investigating the terrorist attack. this after telling fox news way back lasctober just two weeks after the attack that he was at the consulate o september 11th directing traffic and assisting fellow brigade members. we will talk about all of the latest developments on benghazi along with a long list of obama

administration foreign-policy failures, talking with three of the best in the business, congressman james langford of oklahoma, memr of the oversight committee that is now investigating many of the obama's channels. retired four-star general former army vice chief of staff and retired lieutenant colonel and fox news military analyst. they're unie perspectives a investigation goes.ghazi republicans on capitol hill are still pressing for the truth about what happened at our consulate in benghazi on september 11th. the house armed services bcommittee held a classified briefing with colonel george bristol today. he served as commander of a task rce that operated in northern and western africa at the time of benghazi. fox news chief congressional correspondent mike emanu-el has the report. >> reporter: almost 11 months

after the deadly terror attack another revelation of the journalists connecting a two-hour interview was one of the lead suspects will the fbi has not has lawmakers demanding answers. >> right now the med has been speaking to more of the individuals alleged to be involved and have information that we have information from our fbi. and it makes me wonder at this point, our people not pursuing answers to this investigation? >> pressecretary jay carney referred reporters to the fbi and said president obama who stood with then secretary of state clinton before the caskets of the four americans killed wants accountability. >> the president absolutely instructed his team to do everything that they can to bring to justice those responsible for the deaths of four americans. >> reporter: a gop lawmaker sign-on to this letter sent to confirm the fbi director demanding he brief lawmakers on the status of the investigation and 30 days. we appear to be no closer to

knowing who is responsible today and we wer in the early weeks following the attack. this is simply unacceptable. also today colonel george bristol who is leading in the special operations task force in north africa when terrorists stormed the conflict. sources say he confirmed with other military brass and told lawmakers that despite white house claims u.s. officials were not prepared heading into the september 11th anniversary for an attack. >> i could hear the colonel's voice today, the passion and the heartbreak because of the american lives that were lost due to decisions that were made and misrepresented through a press release from the administration. >> reporter: meanwhile the congressman leading the charge for a bipartisan select committee to investigate as to why the cia had an outpost there. >> even le known is about where the other americans, the

cia and tanks, what was the annex, when was it establied? >> reporter: fox is as reported with multiple military source as saying they are living and walking around freely in libya. sources indicate they have had eyes on the suspect since last november, but at this point there was no indication that american officials have spoken with them. lou: thank you. benghazi is not the only obama white house scandal under discussion on capitol hill tonight. republicans on the house judiciary committee had called for a change at the top of the department of jusce, declaring that attorney general eric holder was not truthful when he testified in regard to the james rose in case. the report found that holder gave deceptive testimony to congress to provide cover for misleang testimony trying to disguise his clearly erroneous reading of the statute as a defect in the law.

his phone and e-mail records were seized by the department of justice during an investigation into an alleged state department leader who had been accused of revealing sensitivenformation about north korea's nuclear program. the committee and chairman told fox, i find the lack of leaders of the department of justice extremely alarming. the deceptive and misleading testimony of attorney general eric holder is unfortunately just the most recent example in a long list of scandals that have plagued the department. ining us tonight congressman james langford, member of the house oversight committee also the budget committee and chairm of the house republican policy committee. great to have you with us. if i may, let's begin with the chairman of the judiciary committee saying effectively the attorney general of the united states is lying to congress. >> he obviously gave his testimony that was not

consistent with the truth. we can definitely say that. he had not even contemplated any kind of suspect. find out days later he personally signed off on it. he has been a part of it and then came back d said, he did not have a plan to prosecute. he was just using and to manipulate to get to the next tactics. again, that is fuzzy use of the law and was definitely not clear to us under sworn testimony. this is the same attorney genel that is being held in contempt by the house of representatives. years ago, now two years, he did not turn over documents. he had 10,000 some on documents ed for his own internal investigation ofll turnover us. he has been in contempt of congress for over a year. this is just the latest example. lou: and it is clear that this president and his attorney general will persist without effectively respecting any part of the congress's complaints about either his veracity or conduct.

>> correct. this is a push back on constitutional authority. the legislative branch has the constitutional responsibility r oversight and what happens, the executive branch is saying we're going to ignore all oversight. the senate currently is tinkering with everything. senator reid is basically saying we won't touch any of this which is a shame. the days ahead republican presidents and republican senate will want to have the same authority. the american people deserve accountability of the exetive branch is elected to the legislative branch. it is not right for republican and definitely not right for this ministration. lou: a closed-door hearing. the house armed services committee. your reason, your response, your thoughts about a investigation that has been very effectively stonewalled by this administration and dismissed along with the internal revenue service scandal along with fast and furious. we are talking about people dying in the scandals. these are not minor items. but being dismissed by the

administration and to this point doing so productively, saying there are funny scandals. at will be the house response, or is there one? change the reality. >> you can always tell when we are getting close to the truth when the administration begins to yell even louder and scream more and more accusatio and try to push everyone else aside. the latter they yell you know we're getting closer and closer and closer to the truth. the hearings that we do on capitol hill are not like hearing the courtroom. you know that extremely welell. a courtroom hearing, two years' worth of depositions that lead up to that time. then there is a single hearing. in congress it is a rolling hearing, a hearing, we do follow-up interviews and there is another hearing. there have been a lot of interviews of the last several months. there will be another set of items that come out. we are quickly approaching a one-year anniversary when this

attack. the fbi and this administration has yet to arrest people that we have video footage of them attacking and killing our ambassador, yet they will step in and do it. another new stion can walk in and identify them a couple hours dominion not going to convince me that this admistration to pick them up if they don't want to. lou: it took fox news only two weeks to do the same thing. congressman, a grand bargain, the president is fond of grand baain spirit he starts by dismissing any possibility of negotiation on the debt ceiling. a number of other areas. are you interested in a grand bargain? since whenid grand bargain is become the goal? how about a little simple things like maybe reducing budget deficits and staying within tha debt limit? >> my last conversation with the president face-to-face was can we find agreement between the

two of us in the house and the executive branch to say we're going to work to balance the budget? to me that is where we need to head, to find a way to balance the budget. grand bargain is end up being oke and mirrors to say that we will have some cbs corporation that will bring down the budget at some future year in time. in the meantime, let's spend more money. thissparticular one was particularly grievous. they said, you know, those republicans of what corrate tax reform. all the big fat cats folks if you will give me more money is spent every year. very demeaning. we are after fairness for every single american. every american needs to have reform. the system is overly comicated one to fix the system, not just play around with one part of the code. while we do want to be able to resolve this, we're not trying to find some latest grand bargain to chase down the latest shiny thing. let's fix the broken things. lou: congressman, i am almosts suspicious when republicans talk about a comprehensive revamping of the tax code as i am of this

president when he talks about grand and comprehensive bargains or initiatives, whether it be immigration or any other issue. i have always - it has been my experience as a journalist that when you want to cover something is -- you make the problem bigger first and then you talk about solutions that are so large, so vast that they become abstract. >> lose track of all is in it. lou: am i being too cynical? >> i'm cynical with you. and been on this test for three years. i have seen itnd l.a. firsthand. it is all interconnecting. when you invest in one part it affects everying else. if they truly simplify the code you have to get in and splify e whole code and not just try to mess with a corporate site. simplify the code. whether you're an individual running your business from yr house or some big corporation.

our focus is, let's fix it. no one says this is working great. says i know 100 percent i did that right. we turn in an think i hope that was right. i don't really know anymore. that's silly. lou: congressman, always good to talk with you. thank you. much more on t latest developments in the number of white house scandals throughout tonight's broadcast. stay with us. the secretary of defense does not seem like he is too torn up over drastic cuts to our nation's military budget. generalackies joins us to

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lou: in breaking news tonight, to new developments in the house of representatives. moments ago lawmakers passed the senate approved a plan to lower loan interes rates for college students nationwide. the house voted 392-31 on a bill that sets interest rates on the ten year treasury note plus a cap. that bill now head to the white house where the president has already said he will sign into law. the house of representatives also approving new tougher sanctions against iran. that vote 400-20. defense secretary jack hegel today says he is not as he put it crying wolf about sequester cuts. he laid out how the pentagon planning for what could be the smallest army since before world war ii will look like. >> if these abrupt cuts remain we risk fielding a force that over the next two years is

unprepared to to a lack of training, may nice, and the latest equipment. cuts on this scale would in effect be a decade-long modernization holiday. lou: a deccde -- modernization holiday. here to discuss the $15 billion in cuts and half a trillion dollars over the next ten years is general jack keene, retired e to the former army vice chief of staff and military analyst. great to have you with u. a decade the long holiday of modernization. are people really talking like that in washington d.c. today? >> absolutely. one of the things that has happenedo us, and we know we have a struggling economy, but now w are voluntarily reducing the united states military from being a global superwer that

it used to beat. i mean, it is quite extraordinary. this is republicans and decrats both doing it. asou noted in the introduction , the smallest army says prior to world war two and one of the smallest navy's, the harsh reality of that is to climb out of that. does not happen in weeks if we have a crisis. it actually takes years. they felt tte world was a less what they did was significantly slash the military. before the decade was out they found themselves in the largest ever been. they could not increase their combat power is satisfactory standards and their dependent on the united states for their very survival. they have never recovered to that. they're moving in that direction thinking the world will be a safer place for us. lou: let me just tell our audience what that looks like. the pentagon considering a plan

as the secretary said today, african take a look at this, reducing the army military force of 490,000 to 380,000, the navy will lose two aircraft carriers that would mean to aircraft carrier groups. the marines will be cut by as many as 33,000 marines. the air force will likely develop advanced analogy. i mean, this is insupportable given the mission and the global war and terror that we have been fighting since 2001. the extension of our military force across the globe, and there is no debate, no discussion about that mission or our interest for the policies we're going to pursue and their relationship to a military power that we would extend along with our statecraft. >> the fact of the matter is we are taking huge risk here, and

it is one of the most significant i have seen a stake in generations. it certainly is ignoring the harsh reality of the world that you just described that is out there and the merging china, radical islam that is on the move in the world in establishing the -- and this in iranian state that once nuclear-weapons and is intent on establishing regional hegemony and controlling the middle east. these things are not arguable. there are facts. and we should not be reding our military. military is also a deterrent force. it is not just a force to be used in conflict. it spends most of its time preventing conflicts which it gets very little credit for. as a deterrent force we will be considerably les than as a response of force. lou: your sense, your judgment that there will be ofurther discussion, a broader, more intelligent debate about this

united -- the senate or the house before this cutback, drastic cutback takes place >> i would hope so. i hope that we would not move with the continuous sequestration numbers and the path that we are all on right now. that is what gets you ds terrific numbers. and there is some compromise over those numbers. that is what responsible, intelligent debate should produce. i am frustrated and somewhat pessimistic because look where we are. we are still moving in that direction toward those numbers with nothing out there that appears to make a change. lou: and to hear a secretary of defense use the expression 810-year modernization holiday is in and of itself -- and this is just my view, deeply disturbing as well. general jackeene, always good to talk with you.

thank you for sharing your insight. >> take care. always good to be here. tuing to wall street, stocks finishing after a better than expected economic report. the latest statement from the fed keeping those easing money policies in place and investors, the dow jones industrials down 21 points. the s&p down a fraction, the nasdaq gaining ten points. for the month the dow posted gains of 4%, s&p up nearly 5%. the nasdaq climbing more than six and a half percent for the month of july. up next, senator mccain calls fox new coverag of the immigration debate schizophrenic the "chalk talk" will show you why that word might be just a little on comparable for the maverick himself. next. with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you.

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>> we are reinforcing their credentials as one but it doesn't do much beyond that. let's ke a look, we are talking about president's new best friend forever. we learned that they are heading to egypt. a republican, may i remd you, it is mitakenly walking into that democrat that the capital. the whole room filled with liberals.

but it doesn't give you any pies that you are more popular with democrats in your own party? third, you, a republican, joked that it would be a tough choice. enator rand paul and secretary of state hillary clinton. would you like to switch parties now or wait while? back in march we might remind you that you said senator rand paul and another potential candidate, senator ted cruz was wacko. it's like you own the term. for pete's sake, your most notable work in the senate is this. they don't call you john mccain, they say that you are mccain

kennedy. mccain lieberman who is next? is next, senator? but we do know it will be a democrat. the left wing liberal media loves you. i don't know why that is o you. you are the most frequent guest on the talk shows. we ha the latest approval rating in arizona where you are not exciting or constituents with the democratic party. it is 26%. that is the worst since the early '90s. we need the house immigration legislation and perhaps defer to

the house which is a demonstrably better idea. >> the obamacare train wreck i getting worse, if you can amana tonight. aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401(k) to hidden fees.

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lou: a government watchdog report from the department of homeland security has lost track of a million visitors. but they have way of determining. dhs is nine years overe to track departures that was

supposed to be ready that in 2004. the federal government's incompetence is extending beyond that. there were even 2000 cases of screener sleeping on the job or allowing bypassing security checkpoints. more than 3000 screens showed up late or left the job without permission. and there were 56 cases of outright that. he president obama today seeking to reassure democrats that the implementation of obamacare.

it shows the mandate will cost taxpayers just $12 million more. joining us now is former congresswoman nan heyworth. off the rails, what did jn boehner college, a-train lack? the democrats are starting to make sounds like people who are sayi that it is going to be a train wreck. i heard this story is something that health caris more expensive than it needs to be. lou: >> they are strugg with the price of premiums. florida and georgia will have to

suffer the consequences for sure if. lou: the other state is the state of new york. that is how they operate. but secondly they are the highest state to begin with. what a mess. >> they have so much opportunity. to et common sense prevail if we cou have a system that a lot of people have to use their own fans. the health savings accounts, liability reform. that we cou afford to have anyone have insurance about massively taking over health care from the federal government. lou: i wonder if we have moved beyond that point. we are talking about full on implementation and whatever that means come january. i don't get the sense that people want to take responsibility for themselves. i don't get the sense that they want to have a debate over socialized medicine again. many people are so frustrated that they say to the heck with it, let's have socialized

medicine and let's let somebody pay for it. so long as it's not me. >> but what do people know for sure? i just actually heard it from a very nice woman that i was talking with earlier today. first, health care insurance premiums costing her almost $8000 per year. she doesn't have that kind of job. she wants to hang onto her job and people know that they are having trouble finding employment. lou: the cost of health care, small business, it is part of the jobs in this country. when you ssay killing jobs, you are talking about part-time wor

instead of full-time woork. >> i want to provide insurance plans for my employees, but i cannot afford to provide insurance for them with premiums gog up the way they are. lou: it was screwed up for obamacare. lou: out-of-control pharmaceuticals, is absolutely insane. >> absolutely. lou: the fact of the matter is that doctors have been taken out of the equation. they seem to have had no role in obamacare creation. we know that every projection shows that fewer doctors over the next decade and not more. we are going to have more it looks like. what is the outlook for physicians who are fairly central to health care? >> i remember from having

practiced, the cost of practicing in a state like new york if you have employees and rules and regulations that you have to comply with. and then you have malpractice iurance. and much of this is far more costly than it used to be. doctors are finding that they have to close their practices or reduce their practices or even retire earlyrom practice because they don't know how they will be able to afford to keep up. lou: some of the stimates rise in this country over the next decade or so. do you think it will be that severe? how soon do you think we will ca? >> the cost is far higher than it needs to be. the reason for that is our institutions, the medical institutions. that is a result of government involvement for years. we need to have common sense

prevail. this doesn't have to be democrats versus republicans. we have an opportunity here. lou: doctor nan heyworth. thank you so much. an escalating war of words between potential 2016 candidates. you won't believe it. these two guys squaring off against each other. the governor of new jersey, chris christie and senator rand paul. cue the fireworks. >> so is if senator paul wants to look at where he will cut spending, maybe he should look at cutting the profile spending that he brings home to kentucky. >> this is the king of bacon talking about bacon. we have two military bases in kentucky. and as governor chris christie recommends that we shut down our militaryases, he wants to be this great champion of national defense. does he want to shut down mitary bases in kentucky? lou: just a few hours ago, this individual called for a truce.

perhaps he realizes that he is engaging in a battle of metaphors. breaking news out of the senate side as well. the bureau of alcohol, tobacco, firearms and explosives now has its director confirmed. this will be th first director of atf in seven years. t senate voting to confirm todd jones by a margin of 53 to 42. the atf has its first director in seven yea. i guess that we can hout hallelujah or something to that effect. up next, markets paying close attention to that fact. reacting sharply to debate reacting sharply to debate policy announcement. [ male announcer ] the mercedes-benz summer event is here. now get the unmistakable thrill... and the incredible rh... of the mercedes-benz you've always wanted. ♪ but you better get here fast... [ girl ] yay, daddy's he. here you go, honey. thank you.

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the one the market going in the right direction. we have josh simon here. the market seems thrilled. let's feel good about it. >> that is right, they are feeling pretty good. the fed didn't say all that much, frankly. lou: 85 billion a month, we're going to keep doing that. >> the fed also recognizes that this will begin most likely in september. if they wanted to come in a sort of could have deflected those expectations, but they didn't. lou: we will mention this in a minute. the policy statements. inflation here.

>> well, this is more than others. and in this one, i think it is pretty important to recognize that. unemployment is too high. inflation is too low. that reinforces why we need to accommoda a. lou: how about the unthinkable? how about 120 a month? >> that is pretty unthinkable. >> we would all like to see a better rate. lou: i think that t is pretty important spirit they are recognizing that it may be after

purchases. wall street and banking is en masse. we have to reduce the debt. we have to reduce at some point. let's talk about the economy and be positive about business. >> with all the headwinds from this, we have made progress on that front. the fiscal restraint has taken a serious dent in the economy. the good new is that should be particularly rt of maxtor.

>> verse while you have the tax increases. all about the whole package. lou: private economists say we'e going to watch what happens. when the race was on the wealthy, this will turn out to be a shot just exactly as a republican said.

>> the economy has struggled to grow in this is part of the reason. lou: what happens for therest of the market? >> i think the economy does a little bit better. and i think that this starts to taper and we havea strengthening economy and that isenerally supported. lou: josh, thank you for coming on. up next, a brand-new book. deadly consequences makes the case that war is place for case that war is place for gender diversity.

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lou: joining me now is a senior fellow for the family research council, colonel bob maginnis.

telling you straight ofthe top, the author of the new book, "deadly conequences." how cowards are pushing women in combat. >> thank you for sharing your knowledge and time. >> we have one side attacking equali and the other attacking readiness. we ought to talk about this and if not, why are we going in this direction.

i was very convcted to say that wehave sequestration, we are downsizing, we have a radical problem overseas with all sorts of threats. we don't need to weaken the point of the spear. lou: i have two daughters and two sons and they are all very strong individuals. they are very tough. and we have seen what happens to men who we exhaust in we have been horrible and what

we have asked in our men in unifo. >> this gives me more lean muscle, gives me cardiovascular stem and it was heavy at a faster pace. i demonstrate some sklls does anyone really believe.

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you bet. now if you like that, press the red button on top. ♪ how did he not seehat coming? what's in your wallet? >> the same old bargain and song and dance. welcome, everyone, i am neil cavuto. today the president on capit hill. he met with democrats and not republicans. which makes me wonder whether the president was offering an olive branch. republicans are thinking that they might have gotten a shorter end of the stick. in fact, that very same press, the ones saying that the ball is in their court. the last time that i checked, there is nball in any court because